Reliance and Abu Dhabi Chemicals sign JV to invest US$2 billion in UAE
The project will enable the substitution of imports and the creation of new local value chains, while also meeting the growing demand for these chemicals globally.
Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) and Reliance Industries Limited (RIL), have agreed to launch ‘TA’ZIZ EDC & PVC’, a world-scale chemical production partnership at the TA’ZIZ Industrial Chemicals Zone in Ruwais.
The new joint-venture will construct and operate a Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, with an investment of more than US$2 billion. Representing the first production of these chemicals in the UAE, the project will enable the substitution of imports and the creation of new local value chains, while also meeting the growing demand for these chemicals globally.
Application of those chemicals:
The chemicals have a wide range of industrial applications, enabling local supply chains and meeting growing demand in key export markets.
1. Chlor-Alkali enables the production of caustic soda, crucial to the alumina refining process.
2. EDC is used in the production of PVC, which is used to manufacture a wide range of industrial and consumer products including pipes, windows fittings, cables, films and flooring.
The production of Chlor-Alkali, EDC, and PVC will create opportunities for export to target markets in Southeast Asia and Africa, as well as provide local industry with a source of critical raw materials manufactured in the UAE for the first time, strengthening In-Country Value.
Background of JV partners
The TA’ZIZ Industrial Chemicals Zone is a joint venture between Abu Dhabi National Oil Company (ADNOC) and ADQ. ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi.
ADQ is one of the region's largest holding companies with direct and indirect investments in more than 90 companies locally and internationally. As a strategic partner of Abu Dhabi’s government, ADQ is committed to accelerating the transformation of the emirate into a globally competitive and knowledge-based economy.
Reliance’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail, and digital services.
In the early morning trade, Reliance share opened with a 1.8% gap up at Rs 2,424 and reached a day's high of Rs 2,431 owing to this mega Joint Venture deal. At noon share was trading at Rs 2,416, 1.43% up for the day.
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